Gurgaon/New Delhi, Feb 25, 2007 – In a year that witnessed all-round economic growth, the India Client Personal Computer (PC) market witnessed a 25% year-on-year growth in unit shipments (CY2006 over CY2005), according to IDC's India Quarterly PC Tracker, 4Q 2006, February 2007 preliminary release.

Commenting on these findings, Kapil Dev Singh, Country Manager, IDC India said, “The 5 million PC shipments and 25% growth of the Indian PC market indicate the maturity it has attained. The market is characterised by the emergence of clear-cut segments, vendors running segment specific marketing programmes and the market ceasing to be just price driven. The future of the PC market depends on how quickly and strongly new need drivers evolve.”
In the overall Client PC (Notebooks and Desktops combined) market the rankings remained unchanged. HP retained the top spot with a market share* of 21%, followed by HCL at 14%, and Lenovo at 9% in terms of unit shipments.

In the total desktop PC market, HP led the market in CY 2006 followed by HCL and Lenovo. In terms of total commercial desktop PC shipments* HCL and HP jointly shared the number one position in CY 2006 followed by Lenovo. In terms of total consumer desktop PC shipments* HP led the market in CY 2006 followed by HCL and LG Electronics.

In the total Notebook PC market alone, HP retained the top spot with a market share of 38% in CY 2006 in unit shipments. Lenovo and Toshiba were at second and third spots with market shares* of 17% and 10%, respectively.
The key market highlights were:

• Positive growth in Desktop PC average selling values (ASVs)
• Notebook PC shipments doubling within a year
• Client PC shipments expected to witness increased traction in 2007, as IT retailing undergoes widespread experimentation

India Preliminary PC Shipments by Form Factor, 2006

$ Year-on-Year Growth – JFM-OND 2006 over JFM-OND 2005
a Includes all Desktop PC and Notebook PC shipments

Desktop PC average selling values (ASVs) grow:

• According to Piyush Pushkal, Manager, PC Research, IDC India, “The year 2006 witnessed a 3% growth in average selling values (ASVs) of desktops*, thanks to increased adoption of LCD/TFT monitors and other accessories, by users seeking to future-proof their investments as well as experience enhanced functionality.”

In fact, as per IDC’s India Quarterly Monitor Tracker, 4Q 2006, February 2007 preliminary release, LCD/TFT monitor shipments grew more than 200% on a yearly basis (2006 over 2005) for branded desktop PC players.

Notebook PC shipments double:

The Notebook PC market growth was contributed in large measure by the buoyant Education segment buying, individual consumer/SOHO purchases and increased traction from the SMB segment. With higher education institutes such as Engineering Colleges and Management Schools aggressively adopting the concept of Wi-Fi campuses and usage of notebook PCs in their learning tools and methodologies, a healthy surge in shipments was seen.

Client PC shipments to gain traction in 2007, as IT retailing undergoes widespread experimentation:

• 2007 is also expected to be the year when Overall PC shipments through retail outlets, especially the Notebook PC form factor would see a higher traction.

“The year will see IT vendors trying out many new approaches and go-to-market strategies for product retailing. The efforts will focus on wooing SOHO and individual/home customers for converting them into impromptu buyers. Experimentations will also be seen in retail formats, in-store and on-site promotions, product bundling, and alternate payment options. IT retail outlets of HP, HCL Infosystems¢ Digi-Life stores and multi-brand IT product retail stores like Sahara’s ‘IT Junction’ initiative, Pantaloon Retail’s ‘e-zone’, Big Bazaar etc. are already functional. Other big Indian retail players are expected to quickly follow suit, trying to reposition their offerings to customers by segmentation and a competitive approach”, commented Piyush Pushkal, Manager, PC Research, IDC India.
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About IDC India
IDC (India) Ltd., set up in 1987 is an ISO 9001:2000 company. IDC (India) Ltd. is a subsidiary of CyberMedia and is regarded as the country’s most comprehensive, dependable and respected source for market intelligence and consulting in the fields of IT, telecommunications and consumer technology. With its head office at Gurgaon (near New Delhi), the company has branches in Bangalore, Chennai, and Mumbai. Additional information about IDC India's research, advisory and Go-To-Market service offerings can be found at www.idcindia.com.